MONTHLY TRUST ACCOUNT UPDATE – AUGUST 2024

Here’s a copy of what was sent to parties that are subscribed to our monthly trust account update. 

AUGUST Queensland trust account statistics

With roughly one new PTA opened each day and 10 new trustees for the month, here are the key statistics:

  • Total Trust Accounts: 1,783 currently open
  • Trustees: 347 builders and developers managing active trust accounts
  • New Accounts Opened: 29 PTAs and 6 RTAs in August.

More detailed statistics are available in the attached PDF, which includes a snapshot of the information published on the QBCC Trust Account Register.

Download PDF Statistics >

QBCC Audits

We’ve heard that the QBCC have started auditing retention trust accounts as the previous annual audit requirement has been paused.

 

A new addition to the information that they request, is a copy of ABA files used for trust account transactions. These files provide crucial details for bulk transactions, as bank statements and certain software ledger reports often lack the necessary level of detail.

 

For further guidance, I’ve attached a Factsheet that outlines how to best prepare for a QBCC audit.

Download PDF Factsheet >

Principal Retention Trust Requirement

I’ve mentioned this issue before, but the statistics haven’t changed… out of 547 private sector projects where the head contractor has opened a Project Trust Account (PTA), only 66 Principals have opened a retention trust account for holding cash retentions from the head contractor. This represents just 12% of all private sector projects.

 

I suspect that more Principals are using cash retentions as a form of security under the head contract and are therefore required to establish and use a retention trust account.

 

Additionally, I continue to hear from head contractors that many of their clients are unaware that they need to set up and use a retention trust account when withholding cash retentions.

 

To help with this, I’ve created a detailed factsheet outlining a Principal’s obligations, which you’re welcome to share with your clients for more clarity on their trust account requirements.

Download PDF Factsheet >

Assistant in training

Liam (the guide dog in training) has been working hard in support – he’s really enjoying office life 😉  

Need further information?

As always, please reach out if you have any questions, feedback, or just want to discuss trusts!

 

Thanks kindly,

Laura and the Building Trusts team

 

Call 0481 194 000 or email [email protected]. 

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